Redesigning the Israeli Psychology Master's Match

Abstract

We report on the centralization of a two-sided matching-with-contracts market, in which pre-existing choice functions violate the substitutes condition. The ability to accommodate these choice functions was critical for the success of our design. The new mechanism is stable and strategy-proof for applicants. It is well accepted by both sides of the market. Our study provides a strong empirical validation for the practical relevance of recent theoretical advances on matching without substitutes.